Managers wishing to avoid loan covenant violations may resort to making accounting changes that increase reported earnings. True or False?

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 17Q: What is an earnings management benefit from showing an increased figure for bad debt expense?
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Managers wishing to avoid loan covenant violations may resort to making accounting changes that increase reported earnings. True or False?

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